The Concept of Life Insurance is very simple to understand which can be described as Life insurance as an agreement between two parties an insurer and a policyholder. A life insurance policy assurances the insurer pays a sum of money to named recipients when the insured policyholder dies, in interchange for the premiums paid by the policyholder during their lifetime.

Life insurance provides monetary benefits to the family of the deceased or other designated beneficiaries, and may specifically provide income for the insured’s family, burial, burial, and funeral expenses. Life insurance policies often allow the beneficiary to opt for a lump sum cash payment or an annuity payment income. In most states, one person cannot buy a policy for another without their knowledge.

What type of people should buy Life Insurance

Life insurance provides financial help to surviving dependent relative or other heirs after the death of an insured. 

1. Parents with minimal children

The loss of parents’ income could generate financial difficulty due to the death of parents. Life insurance can make sure the kids will have financial support when they need it until they can support themselves. Life insurance will be very useful for a better future for kids if unfortunately, parents could live.

2. Parents with adult children

Adolescence is one of the difficult stages for children in their life. They become very curious and try to do something new and they also have a very high possibility of risks. If parents success to complete the premium of their adult kids then they will get some coverage for their kids.

3. Parents who have special adults in their home

Special and neglected children have a very difficult life than others. Their life is based on their parents or caretaker. If their parents and caretaker will not successful to give him support ie if the caretaker dies then kids will get the coverage which will help those kids to live their life.

4. Adults who own property together

If the death of one mature member of the family happens then the other members could no longer afford loan outlays, upkeep, and taxes on the estate, life insurance may be a good idea.

A life insurance policy can have the main concept first one is a death benefit and a premium. Term life insurance has these two concepts, but permanent or whole life insurance policies also have a cash value element.

By Admin

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